AI-driven layoffs are happening everywhere. Palantir co-founder Joe Lonsdale suspects that much of this is not due to AI at all.
From Block to Atlassian to Coinbase, the layoff memos are very similar. They cite increased productivity through AI technology and the need for smaller teams with fewer layers.
Mr Lonsdale is not convinced.
“Everyone who overhired, cut standards too low, or didn’t grow on budget in the 2021-2023 wave is now pretending they’re laying off people ‘because of AI productivity,’” Lonsdale wrote in X.
The post quickly gained traction online, with venture capitalist Marc Andreessen co-signing the message. Jon Chu, a partner at Khosla Ventures, also co-signed, calling for “meta and square as clear examples.”
Gannon McCollum, a staffer at Elon Musk’s xAI, commented that AI’s excuse “sounds a lot better than management admitting they couldn’t manage growth.” Lonsdale responded with a bullseye emoji.
Dockvine founder Sid Jain called it a “PR machine.” Alan Chang, founder of Fuse, asked, “If leaders can’t admit their own mistakes, how can we expect employees to admit their mistakes?”
Lonsdale is not the first to suspect that there is something wrong with the basis for these layoffs. Sam Altman said in February that companies were “AI-washing” job cuts.
“People are blaming AI for layoffs that should have happened because of AI,” said OpenAI’s CEO.
Block CEO Jack Dorsey was particularly accused of concealing efforts to correct overhiring during the pandemic. He replied that while that was true, it “lacks all the complexity.”
Lonsdale is a strong believer in AI. 8VC, a venture capital firm where Lonsdale is a general partner, has invested in several AI companies.
“I believe that AI will improve productivity,” Lonsdale wrote in a comment. “I know what hundreds of companies are doing.”